Retu Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 4,000 2,200 5,500 4,500 4,000 Dollars $ 680,000 374,000 935, eee 934,000 680,000 All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 25% in the second month after the sale, and 5% proves to be uncollectible. The product's purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 24% of the next month's unit sales plus a safety stock of 170 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,332,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $100,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $100,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 14% interest rate. On May 31 the loan balance is $31,000, and the company's cash balance is $100,000 Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April May June, and July 3 Pranare the merchandise nurhace hurlet for Mac line and will Ranntallatione in ite and then ch the Hallar amount of Retur TLC Diy, wy WULUHY LOS HOLLIC WOHIN LIIC VIGIILE CACCUS SIVUVU, UIC My pays a THULIT ULUI IUGITO IL LOH without going below the minimum. This type of loan carries an annual 14% interest rate. On May 31, the loan balance is $31,000, and the company's cash balance is $100,000 Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July 3. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month. 4. Prepare a schedule showing the computation of cash payments for product purchases for June and July 5. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) should AZTEC COMPANY Cash Budget June and July June July $ $ 100,000 Beginning cash balance Cash receipts from customers Total cash available 100,000 588,880 688,880 700,400 800,400 520,520 Cash payments for: Purchases Interest expense Selling and administrative expenses 478,808 362 111,000 111,000 631,520 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 590 170 98,710 1,290 100,000 $ S Loan balance bune Inh Interest expense Selling and administrative expenses 362 111,000 111,000 590,170 631,520 98,710 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance $ Loan balance 1,290 100,000 $ 0 June July Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month